Oil Prices Rise Amid Escalating Tensions Between US and Iran
Oil prices continued their ascent on Wednesday, following the previous day's surge, as concerns over supply disruptions intensified after the US and Iran exchanged strikes.
The Brent crude futures price rose by $0.75 to $95.40 a barrel, while U.S. West Texas Intermediate crude futures climbed by $0.44 to $90.66. These increases marked the largest gains for Brent since July 24 and WTI since July 23.
The US launched airstrikes against targets in Iran overnight, prompting a response from Tehran, marking the most serious escalation of the conflict between the two countries in weeks.
ING analysts noted that developments in recent days have brought risks to regional oil supplies back into focus, citing the potential for further disruptions through the Strait of Hormuz.
Priyanka Sachdeva, Phillip Nova's head of market insights, stated, 'The oil market is no longer pricing just the risk of war; it is increasingly pricing the cost of an unresolved war.'
Meanwhile, in the US, crude inventories fell by 2.6 million barrels in the week ended August 28, while distillate stocks declined by 265,000 barrels.